Are you moving to a new home or area? Trying to decide what to do with your current home?
More people are renting now than at any point 50 years ago. Looking to see if you can tap into this market and keep your current home?
How do you decide to rent or sell a house? You can get monthly income renting, but you can also get a lump sum when you sell a house.
Keep reading to help you decide if you should rent or sell your home in Dayton, Ohio.
Will You Make Money If You Rent?
First, you need to research the rental market. Would you have a positive cash flow if you priced your rental in line with the others? To determine if you can make money, you need to consider the following:
- Your monthly mortgage payment
- Insurance premium
- Taxes (you’ll still have to pay them)
- HOA fees
- Repairs (you will be responsible for them)
- Commission if you use a realtor
- Vacancies (when you can’t rent it out)
- Other expenses to find renters like advertising, credit checks, etc.
These expenses can vary. You will have to make an educated guess to determine if renting is a money-maker for you. Think about the long-term and how long you want to rent your home.
Can You Afford Your Next Home Without Selling?
If you are moving to a new area, do you want to buy another home? If so, do you need your home equity to make the downpayment? There are two factors to consider: the monthly cost of two mortgages and the downpayment.
Do you have 20 percent saved up to put down on another home? If so, you can probably rent your home no problem if you feel it will be a profitable income. You need to sit down and figure all your monthly payments and make sure you end up ahead.
Do You Want to Be a Landlord?
So, you can make a profit by renting your home. Do you want to be a landlord? Think about the headaches of being a homeowner, and now think about those headaches times two.
You have to be ready to help your renter with property maintenance and issues. If you are still interested, you could also consider a property management company, but that comes at an additional cost.
Will You Come Back to This Home?
Is your move permanent or just a temporary adventure? If you plan to come back to the area, you may want to consider keeping your home. Having a good tenant will keep your home in shape and it will be ready for you when you return.
What Is the Market Like?
Are you thinking “how can I sell my house fast?” With a hot market, you may be able to sell a house fast. You may want to see what your home is worth.
If you own $200,000 on your home, but it’s worth $150,000, you may want to hold off if you can.
Ready to Rent or Sell a House?
It’s important to do your research to see if you should rent or sell a house. Is the market in your favor? Can you make money renting?
There are a lot of things you need to consider. Talk to a real estate agent to make sure you fully understand the current market to make your decision.
Looking for more home advice either to fix your home up to sell or for your new home? You’ve come to the right place! Check out the rest of our site for some DIY project ideas.